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Income Tax Appellate Tribunal, JAIPUR BENCH VC, JAIPUR
Before: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 1208/JP/2019
PER VIJAY PAL RAO, JM :
This appeal by the assessee is directed against the order dated 19th August, 2019 of ld. CIT (A), Ajmer for the assessment year 2011-12. The assessee has raised the following grounds :-
“ 1. Initiation of proceeding under section 147 and issue of notice under section 148 is bad in law. 2. Addition of Rs. 1054969 (Rs. 1044524 for bogus loss and Rs. 10445 commission on such loss at 1 percent is also bad in law. 3. Addition of Rs. 660000 for bank deposits. Non granting cognizance to revised return filed and making addition of Rs. 54960/- and disallowing claim of Chapter VI A of Rs. 100000. 4. Any other matter with prior permission of the Chair.”
None has appeared on behalf of the assessee despite the notices and intimation was sent to the assessee and his A/R. Even the Invite for Video Conference hearing was also sent to the ld. A/R of the assesee but there was no response to the same on behalf of the assessee. Accordingly, we proposed to hear and dispose off this appeal ex parte.
The hearing of the appeal is concluded through Video Conference due to prevailing condition of COVID 19 pandemic.
The assessee filed his return of income on 07.11.2012 declaring total income of Rs. 1,52,360/-. Subsequently on the basis of information received from DIT Investigation Kolkata regarding taking accommodation entries of bogus losses in the derivative commodity transactions, the AO issued notice under section 148 on 28.03.2018. In response to the notice the assessee filed revised return of income declaring total income of Rs. 97,400/- on 08.09.2018. The AO completed the assessment under section 143(3) read with section 147 of the Act whereby an addition of Rs. 10,54,969/- was made on account of bogus losses booked by the assessee including 1% brokerage treating the same as undisclosed income of the assessee from other sources as well as other addition on account of cash deposit in the bank account of Rs. 6,60,000/-. The assessee challenged the action of the AO before the ld. CIT (A) and also raised the ground against the validity of reopening of the assessment.
4.1. The ld. D/R has submitted that none has appeared on behalf of the assessee before the ld. CIT (A) and, therefore, the ld. CIT (A) after considering the reasons recorded by the AO has decided this issue against the assessee. Similarly, when the assessee has not furnished any explanation or documentary evidence to counter the factual finding of the AO, the ld. CIT (A) has confirmed the addition made by the AO on account of bogus losses booked by the assessee in respect of the derivative transactions in commodity as well as unexplained cash deposit in the bank account.
The ld. D/R has relied upon the orders of the authorities.
Having considered the contention of the ld. D/R as well as the impugned order of the ld. CIT (A) we note that after filing the appeal before the ld. CIT (A), the assessee has not appeared before the ld. CIT (A) despite 7 (seven) opportunities given by the ld. CIT (A). Since the assessee is also not appearing before the Tribunal, therefore, in the absence of any arguments on behalf of the assessee or any material to be relied upon by the assessee, it is not possible to give a conclusive finding on this issue. Hence in the facts and circumstances of the case and in the interest of justice, we take a lenient view and grant one more opportunity to the assessee to present his case before the ld. CIT (A). Accordingly the order of the ld. CIT (A) is set aside and the matter is remitted to the record of the ld. CIT (A) for deciding the same afresh after giving one more opportunity of hearing to the assessee.
In the result, appeal of the assessee is allowed for statistical purposes.
Order is pronounced in the open court on 26/08/2020.